Good day, everyone. And welcome to the Northeast Bancorp Fiscal Year 2017 First Quarter Earnings Results Conference Call. This call is being recorded. With us today from the Company is Rick Wayne, President and Chief Executive Officer; and Brian Shaughnessy, Chief Financial Officer. Earlier this morning an investor presentation was uploaded to the Company’s website, which we will reference in this morning’s call. The presentation can be accessed at the investor relations section of the Northeastbank.com under Events & Presentations. You may find it helpful to download this investor presentation and follow along during the call. Also this call will be available for rebroadcast on the website for future use. The question-and-answer session for this call will be conducted electronically following the presentation. Please note that this presentation contains forward-looking information for the Northeast Bancorp. Such information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which involve significant risks and uncertainties. Actual results may differ materially from the results discussed on the forward-looking statements. At this time, I would like to turn the call over to Rick Wayne. Please go ahead, sir.

Thank you and good morning to everyone. Along with me is Brian Shaughnessy, our Chief Financial Officer and Treasurer. After the close of the market yesterday we announced our quarterly net income of $1.8 million, or $0.19 per diluted common share, and we were very pleased with our operating performance for the quarter. I would like to point out that timing, as I will discuss, had an impact on our financial performance. For example, loan originations were strong and our loan book increased $29 million from June 30 to September 30. However, due to the timing of loan payoffs and originations, average loan balances for the quarter compared to the linked quarter were relatively flat. Brian will expand on this. With respect to our SBA business we originated $15.2 million of loans during the quarter and sold only 55% of the guaranteed portion of such loans. Finally, as frequently noted, transactional income from the early payoffs of purchased loans are lumpy and this quarter transactional income was $1.3 million compared to an average transactional income of $1.8 million over the four preceding quarters. Now I am going to start talking about some of the slides and if we can turn to Slide 3 first. Bank-wide, for the quarter, we generated $99.2 million of loans, including $13.9 million of purchased loans and $42 million of originated loans in LASG; $28.1 million in our community banking division, including $26 million of residential loans and $2.1 million of commercial loans; and $15.2 million in our SBA division, while generating a net gain of $743,000 on the sale of $7.4 million of SBA loans. Our purchased loan yield for the quarter was 10.4%, which includes $1.3 million of transactional interest income. During the quarter we repurchased 645,000 shares of our stock at an average…

Thanks, Rick, and good morning, everyone. I am picking it up on Slide 12 to provide a little more color on our financial results. As Rick noted, it was a solid quarter with net income of approximately $1.8 million, or $0.19 per share. Although earnings per share were down compared to the linked quarter in the comparable fiscal year 2016 quarter, we believe that Q1 strong loan volume in the pipeline of SBA loans available for sale which were highlighted on Slide 11 will provide in future quarters a contribution to earnings through the benefit of a larger average balance sheet and a gain on sale of SBA loans. In addition, in the current quarter we repurchased approximately 645,000 shares at a discount to tangible book value, which we believe will provide meaningful value to our shareholders. Turning to Slide 13. Over the past year we have seen net loan portfolio growth of $96 million, or 15%. The majority of the growth comes from our LASG portfolio with approximately $232 million of purchases and originations. As shown in the chart, in the trailing 12 month period since September 30, 2015, we have closed approximately $59.3 million of SBA loans and we have sold approximately $41 million of the guaranteed portion of these loans into the secondary market. These loan sales have contributed approximately $4.2 million to revenue in the same 12 month period. While bank-wide loan production has been strong, increases have been partially offset by the following: a high level of paydowns in the amortization and the LASG purchased and originated portfolios which averaged approximately $30 million per quarter over the past year and a paydown of one secured loan to a broker-dealer for $12 million in FY 2016. Excluding this broker-dealer loan payoff, the loan portfolio had net…

[Operator Instructions] Your first question comes from Alex Twerdahl. Your line is open.

Good morning, guys. I just, first, wanted to ask about Slide 11 here, which is kind of a cool new slide. The difference between the 2.6 million and the 7.5 million; is that also just kind of a timing -- a function of timing for when you move fund stuff and then move it to held for sale?

I can talk about the held for sale. Generally, our methodology has been for loans that have closed and have fully funded -- because when a loan has fully funded that is when you have the ability to sell it, that we will transfer it to loans held for sale because everything has been done to be able to sell it. And from a timing perspective, we just didn’t have the ability and the time to sell it in the current quarter.

Okay. So the 6.6 million that is funded will then be moved to held for sale and then eventually be sold, presumably. And then the 0.9 million that is to be funded will be funded and then moved to held for sale and then sold presumably. Am I reading that correctly?

You were, Alex. Let me just amplify a little bit for your benefit and for others on the call. When we close the loan, an SBA loan, they don’t always get funded at closing, sometimes there is some amount that is held back because it is a loan secured by a hotel and there is money required to do what is called PIP to improve it to keep the -- as you have to do under the franchise. That is a loan that is closed, but not fully funded and under SBA rules you cannot sell it. The second thing that occurs sometimes is that if we close loans late in the third quarter -- this is not the absolute date, but kind of directionally, say, after the 20th day in the third month of the quarter, you can’t get that loan settled before the end of the quarter. And so we hold on to that and sell it in the beginning of the third month of the following quarter so we get the interest income on it. And so there is loans that we have closed, but haven’t been sold generally for one of those two reasons: either they’re not fully funded or fully funded, but all of that has occurred late in the third month of the quarter without enough time to sell it in the quarter so we hold it. With this new Slide 7, which the hope is it provides some more transparency into the SBA business as intended to do, is to kind of show what is on the balance sheet from what we have already closed but may not have been ready to sell yet that will, ultimately, be sold.

That is very helpful, thank you. And then can you give us some commentary on what the premiums, are they pretty stable in the, when you do actually sell these things, the premiums that you get on sale?

Yes, there wasn’t much change in the last quarter. When you look at the bids that come out daily from the various buyers of those loans that didn’t change much. What changes for us sometimes, if they are shorter term, depending upon the spread over prime and depending upon what the costs are in getting the loan sourced and closed. But not much change.

Okay. Then just a final question for me. It seems like during the quarter you were running with a bit more liquidity in short-term investments than normal. Do you have plans to put that to work in anything beyond loans?

I’m sorry; you said beyond loans?

Yes, I mean like any other securities purchases or anything to get just a little bit more yield before loan production or before loan production needs to be funded.

We, of course, look at that from time to time and the short answer is, no, we will probably use that for loans. Investments are generally 100% risk-weighted for us, so they use up as much capital as the loan does. Others may have a different view. Ours is where rates are now you don’t get paid either for taking risk, duration risk on interest rate or credit risk in that and so we are using it for loans. One of the things we tried to do, and the nature of our business, as you know, because some part of it is transactional and you’ve mentioned it and explained it well in your reports, we to carry more liquidity than other banks because of the regulatory condition not allowing us to borrow. We have to fund ourselves with core deposits. But one of the benefits which we expect to see kind of in the next quarter going forward is we wound up growing our loan book. By the end of the quarter it was almost $30 million higher than it was on day one. But we just use the cash we have on board, on balance sheet and so we would expect that the net interest income from growing our balance sheet will go up a step. We don’t have incremental carrying costs for those loans.

[Operator Instructions] I am showing no further questions at this time. I will now turn the call back over to Rick Wayne for closing remarks.

Thank you all of you who have participated in the call. We try every quarter to take a look at our information that we provide and give our investors more information. Slide 11 was an example of that this quarter. Ask any of you that would like, have some thoughts on how we can provide more and better information let us know. And again, we appreciate your support. Thank you very much.

Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation and have a wonderful day. You may all disconnect.